6 Types of Crypto Enthusiasts and Investors – Which One Are You?
Whether you are new to Bitcoin or have been around since the market crash – there’s always room for everyone in the space! The combination of different types of enthusiasts or investors help the adoption rate of crypto in the mass population.
Thus, instead of throwing shade at each other for not sharing the same love for a type of coin or token, remember that everyone is important in popularizing cryptocurrency as a whole.
Learn which type of crypto enthusiast and investor you are:
1. BITCOIN MAXIMALISTS
Bitcoin maximalists are a group of people who believe that Bitcoin is the only cryptocurrency and currency in general that is important and valuable.
They do not believe altcoins are going to be as good or useful as Bitcoin. They view altcoins as technically incapable and “morally questionable.” These people usually came from the same time that Satoshi was still active and they take part in Bitcoin forum to see the ideas come to life.
HODL refers to “hold on to dear life” where it’s a jargon used to describe the need to long for an asset believing its value is going to incline overtime. Hodlers are users who have seen the downfall and rise of Bitcoin throughout the years from 2017 onwards.
They are people who accept that the market is volatile and are willing to hold onto their assets for the long run over the years rather than sell them immediately when the price is in or against their favour. They are willing to shut the noise from haters and believe in the value of their asset. These users play a crucial role in helping to stabilizing the market value.
3. ALTCOIN SUPPORTERS
Altcoin supporters refer to the group of people who believe in the inclusiveness of alternative cryptocurrencies aside from Bitcoin.
They believe in diversifying their investment rather than only hodling on Bitcoin. They also like that altcoins are more affordable and allow people with less wealth to be able to be part of the crypto market by investing in smaller coins.
4. MILLENNIALS & GEN Z
These users are belong to the age group that are more tech savvy because they grew up in the internet era. With a diversity in technology via smartphones, apps, and social media, they are more adventurous in different types of investments. According to Fintech Magazine, 20% of millennials in the UK invested in cryptocurrencies worth £25,000 or more.
Plus, they are still comfortable viewing Bitcoin as part of their retirement plan and are not as sensitive to the volatility of the market compared to the older generation who will most likely need to use the funds sooner than the millennials.
5. FINANCIAL INSTITUTIONS
Financial institutions including banks and venture capitalists are now befriending with the crypto community. Rather than putting down the industry like they did in the past, they realize the potential the technology can bring in both efficiency and profitability.
Plus, the crypto community depends on the relationship with the financial institutions to help grow the crypto adoption and overcome legal restrictions. For example, JPMorgan Chase revealed its in-house digital currency JPM Coin had gone live in 2020.
Traders from other markets (particularly gold) who entered cryptocurrency have represented the significant and earliest adopters of cryptocurrency. They understand how to navigate through the volatile waves and apply their learnings to the crypto market.
Rather than keeping their Bitcoin and other cryptocurrencies in their digital wallets, they enjoy making the most out of them through trading activities. Plus, these traders make the most of the volumes for both spot and derivatives market.